Frequently Asked Questions
Broker Submission / Fee Sheet
Estimated Settlement Statement from escrow
Yes, but will also pull our own credit when the loan is submitted.
Hazard Insurance – needs to reflect 5th Street Capital as the loss payee
Appraisal – if performed for another lender we require an appraisal transfer letter
Preliminary Title Report
Desk/Field Review (if required)
Insurance RequirementsAll property types (with the exception of condo’s**)
Required coverage equal to the lesser of the following:
- 100% of the insurable value of the improvements, as established by the appraisal or property insurer; or
- the unpaid principal balance of the mortgage, as long as it at least equals the minimum amount—80% of the insurable value of the improvements.
Condo RequirementsMaster Policy
Insurance must cover 100% of the insurable replacement cost of the project improvements, including the individual units in the project. An insurance policy that includes any of the following coverage, either in the policy language or in a specific endorsement to the policy, is acceptable: Guaranteed Replacement Cost – the insurer agrees to replace the insurable property regardless of the cost, Extended Replacement Cost – the insurer agrees to pay more than the property’s insurable replacement cost, or Replacement Cost – the insurer agrees to pay up to 100% of the property’s insurable replacement cost.HO6 Insurance
If the policy is a “bare walls policy” This policy typically provides no coverage for the unit interior, which includes fixtures, equipment, and replacement of interior improvements and betterments. As a result, the borrower must obtain an individual HO-6 policy that provides coverage sufficient to repair the condo unit to its condition prior to a loss claim event, as determined by the insurer.Liability Insurance Requirements
The amount of coverage must be at least $1 million for bodily injury and property damage for any single occurrence.**if property is a site condo without a master policy follow all property type coverage requirements